Qala Life and Qala Insurance refuse to pay for the service they engaged for three years

Press Review Information Monitoring Agency (PRA) had delivered media monitoring services to “Qala Life” and “Qala Insurance” companies since January 17, 2018. The representative of both insurance companies ordered media monitoring service to the Agency. In fact, the public relations officer of both Insurance Companies and the Agency’s representative had been engaged in negotiations and discussions on the provision of Media Monitoring services to Qala Insurance and Qala Life since the beginning of January 2018.

Upon reaching an agreement on the terms of service provision, an electronic version of the contract was sent on January 18, 2018. The Press Review Agency was twice requested via the official e-mail address of Gala Life Insurance Company to render the service to 7 people, including the management of the Insurance Companies on January 31, 2018. On April 2, 2018, the agency was again contacted via the official e-mail address of "Qala Life" insurance company and informed about the difficulties encountered in the service delivery to 3 people from management team. The problem was solved at once and the delivery was continued.  

At the beginning of 2021, it was found out that Qala Insurance Group did not pay the service fee for 36 months. Although the Press Review Agency appealed to the management of both insurance companies, the problem has not been resolved.  Despite the fact that, the companies confirmed the delivery of the service, they rejected to pay for the service. In fact, according to their explanation only the chairmen of the Board, have the authority to negotiate and sign the contract on behalf of these insurance companies.

It is to note that, the management of both insurance companies were aware about written communications among the parties which was a part of contract negotiations process. In fact, the copies of all correspondence were sent to the management as well and archived in the Agency’s database.

PRA submitted an official letter to Qala Insurance for the resolution of the dispute. Upon a negative response, a lawsuit was filed against above named insurance companies in the Baku Commercial Court. The judge Ulkar Hasanova was assigned to review the case. All the evidence proving the provision of the services to both insurance companies were presented to the court. In addition to the proofs about the delivery, it was discovered that, both insurance companies used the reports provided by the Agency for their own advertising purposes in the media. Both insurance companies also failed to present an employment contract signed with the representative acting on behalf of them in the negotiations and discussions. Thus, the companies, which used the service illegally for 36 months, were found to have grossly violated labor laws. Despite the written evidence submitted for the above facts, Baku Commercial Court concluded that “taking into account the facts of the case and the provisions of the law, the plaintiff failed to substantiate the  claim for the service fee to be paid by the defendants and failed to provide credible evidence. Thus, the claim is not satisfied”.

The Press Review Agency did not agree with the decision of the Baku Commercial Court and filed an appeal. The Baku Court of Appeal is delaying the case under various excuses. The Press Review Agency announces that it will keep the media and the public informed of the progress.